United States

• US commercial crude oil inventory fell by 1.36 million barrels for the week ending on 3/May, after rising by 7.3 million barrels the week before.
• EIA increased its global liquid fuels production for 2024 and 2025 by 110,000 bpd and 40,000 bpd, respectively.
• EIA forecasts OPEC’s spare production capacity around 4 million bpd through 2025.

• PetroTal is acquiring Block 131 onshore Peru including the Los Angeles field from CEPSA for US$5 mm.
• The field produces ~900 boe/d from 4 existing wells and holds 4.9 mmbbl of 40-45 deg API oil 2P reserves.
• We estimate that 3 new wells (at ~US$12 mm per well) could increase production to 2-3 mbbl/d.

• On March 13, nearly two months ago, Ethereum implemented its most significant upgrade in the past 20 months, marking a notable development since the Ethereum Merge on September 15, 2022.
• Known as Dencun or Cancun-Deneb, this upgrade introduced the highly anticipated Proto-Danksharding feature, designed to significantly improve the scalability of Ethereum’s Layer 2 solutions, also known as rollups.
• This enhancement has allowed rollups to drastically reduce transaction costs by approximately five to 10 times, while also stabilizing their cost fluctuations.

• XPER made further progress on product placement in the first quarter contributing to expecting revenue acceleration heading into the second half of 2024.
• XPER reported first quarter results that included the announcement of a new Japanese TV brand that would begin using TiVo in a line of its TVs
• Over the last couple of quarters XPER has announced several wins for its connected car and media platform segments. These wins have developed into revenue for XPER

• 1Q24 WI production was 21,807 boe/d, in line with our expectations.
• VAALCO held ~US$113 mm in cash at the end of March, which is also in line.
• With the completion of the acquisition of Svenska, the company now expects to produce 23.6-26.5 mboe/d in FY24.

• IPAR reported first quarter results detailing how consumer demand for fragrances has yet to wane even in a difficult to compare period
• In a change of strategy than prior years, IPAR is spending more in the early parts of the year to build awareness for its lineup of products 
• With one quarter past, we believe Lacoste and Roberto Cavalli are additive to the investment story and not the year’s only topic

• Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.
• Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).
• Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.

• We are reiterating our Buy rating, raising our pice target to $25 (from $14), and upping our projections for a.k.a. Brands after the company registered better-than-expected revenue and Adjusted EBITDA for 1Q24 and raised 2024 guidance, driven by strong domestic results, as all the company’s concepts continue to gain market share in the United States via new stores, expanding digital marketplace relationships and the “test and repeat” method driving newness and fashion excitement.
• Further, we believe the Australian operations, especially Culture Kings, are setting up for a 2H24 turn, with leaner inventories and better product mix.
• As such, even after raising our projections, we believe upside remains in 2H24 and 2025 and are confident raising our price target to $25 and reiterating our Buy rating on AKA.

• Valvoline is the largest pure-play operator in the oil change industry, trading at around 16 times estimated FY25 EPS
• The company plans to accelerate unit growth from 140 to 250 openings per year over the next five years
• Valvoline has a focus on driving incremental ticket growth and strong competition in the market, positioning it for success with a solid foundation from its long history in the industry

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• WillScot Mobile Mini has completed significant acquisitions to strengthen its leadership position in modular office and mobile storage industries.
• The company believes in seizing no-brainer opportunities for acquisitions despite warnings from renowned investors like Warren Buffett and Charlie Munger.
• WillScot Mobile Mini focuses on strategic advantages, organic growth, high returns on investment, and disciplined valuation methodologies to create long-term shareholder value.

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• Q124 revenues of 2.36 billion, $60 million above the guided midpoint, down 5% QoQ and down 3% YoY.
• Current quarter revenue guidance of $2.5 billion representing a ~6% QoQ increase and about the same YoY.
• Share price close to record highs yet CY2024 outlook is tepid while the massive over reliance on China just keeps on going

• ExxonMobil’s latest performance paints a promising picture, powered by strategic decisions, cost-saving measures, and a focus on long-term growth avenues.
• In Q1 2024, ExxonMobil delivered $8.2 billion in earnings and $14.7 billion in cash flow, demonstrating ongoing efforts to enhance the company’s earnings power.
• The company made big strides in cost savings, achieving $10.1 billion in Q1 compared to 2019, on track to reach their goal of $15 billion in savings by 2027.

• Phillips 66 reported its first-quarter earnings for fiscal 2024, emphasizing progress in strategic areas, despite some obstacles encountered during the quarter.
• Mark Lashier, President and CEO, noted strong crude utilization rates during the quarter.
• However, maintenance work limited the company’s ability to produce higher-value products, impacting the results.

• The first quarter 2024 results of ADT Inc. highlight the company’s positive growth and future investment opportunities.
• The company continues to focus on its consumer-oriented core security and smart home business, serving a vast market.
• Being an industry leader, ADT benefits from its trusted brand, national footprints, and the ability to tap stable and predictable cash flows to service and reduce its debt obligations.

• Games Global, a promising iGaming content provider and B2B online gaming supplier, set terms for its U.S. IPO. The IPO price is expected to be between $16 and $19/share.
• With the most recent F-1/A, the company may raise ~$114M at the high end of the range at $19/share. Zinnia Limited sells additional 8.5M shares in this offering.   
• Games Global has created an impressive portfolios of iGaming content through a series of successful acquisitions, and I see upside potential vs. IPO price of $17.50 at the midpoint.

• This is a special one-time report on Bentley Systems, an infrastructure engineering software company.
• The company is currently exploring a sale and it presents a mixed but compelling case for potential acquisition.
• Several factors contribute to its attractiveness, balanced by challenges that might influence a buyer’s decision.

• Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US. Both businesses have been affected by the rapid decline in the economy and IT hiring as customers pull back.
• The company trades well below its peers and we expect stock price appreciation when it returns to growth aided by stock buybacks.
• It also plans to grow through acquisition.

• AppFolio, a property management software provider, showcased strong financial results for Q1 2024.
• The company reported a significant 38% year-over-year increase in revenue, which calculated to $187 million for the quarter.
• This substantial growth was primarily due to increases in units and customers, along with upgrades and further adoption of value-added services.

• The latest LyondellBasell earnings showcased several key trends and indicators that provide a comprehensive understanding of the company’s performance and future prospects.
• On the positive side, LyondellBasell has made promising strides in improving safety metrics for its workers, leading to an impressive rate of just one injury per two million hours worked.
• The operational excellence shown by this metric, as well as continued enhancements to LyondellBasell’s core business, has the potential to lead to consistent long-term growth.

• Roper Technologies had a robust start to the year, with double-digit growth in revenue, EBITDA, adjusted DEPS, and free cash flow noted for Q1, which has spurred an increased full-year outlook.
• The Q1 report highlighted the completion of another milestone for the company – the acquisition of Procare Solutions, a provider of software and integrated payments for the early childhood education market.
• The total revenue and organic revenue increased by 14% and 8% respectively while EBITDA saw a 16% growth, with EBITDA margin expanding by 60 basis points to 40.2%.

• Over the past two weeks we’ve discussed the possibility that further downside was limited (4/23/24 Compass) and mounting evidence that suggests the pullback lows may be in (4/30/24 Compass).
• Major risk-on developments for the broad equity market have continued to roll in over the past week, which we discuss below.
• We continue to believe the lows are in, and we see the pullback to the 100-day MA on the S&P 500 as healthy/normal within the ongoing bull market.

• BTC Spot ETFs Unlock Institutional Capital: Explore the impact of Bitcoin Spot ETFs, opening doors to institutional investment.
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• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 2.0x.

• Gaia reported strong 1Q24 results, with revenue of $21.7 million (up 11%), 33,000 net member additions for a total membership count of 839,000 (all-time high), and strong operating cash flow of $5.9 million.
• International revenue growth was particularly strong at 20.4%, compared with respectable US growth of 3.7%.
• Member acquisition costs decreased 10%, partly as a result of a focus on direct-to-paid marketing campaigns, whereby free trial periods are replaced by special incentives to lock in longer-term membership commitments at attractive rates. This also fueled healthy deferred revenue growth of $2.0 million during the quarter.

• Gevo has begun repurchasing shares under the company’s previously announced program.
• The company has so far repurchased 5.5 million shares for $3.7 million, leaving $21.3 million available for repurchases.
• Gevo revised spending on its Net-Zero 1 plant project. 

• LEEF Brands (CSE: LEEF, OTCQX: LEEEF) is a scaled, vertically integrated operator in California.
• It holds the largest cultivation permit in Santa Barbara County, owns LEEF Labs, one of the state’s largest manufacturing companies, and has The Leaf dispensary in Palm Springs.
• The company recently successfully restructured its debt. 

• ADEA signed ten license agreements and reduced debt by approximately $40 million in the first quarter. ADEA has yet to announce a new major OTT license aside from Paramount renewing.
• The investment case for owning ADEA’s stock has centered on the Company’s ability to sign more license agreements
• ADEA remains on pace to generate $150 million of free cash flow to help reduce the Company’s debt balance further.

• ZimVie Inc. historically focused on dental and spine industries since spinning out from Zimmer Biomet in 2022
• Company faced challenges with large debt burden and declining spine business, leading to discounted valuation
• Recent sale of spine business to HIG Capital for $375 million expected to eliminate overhangs, simplify valuation, and position company for stronger future performance

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cheniere Energy (LNG) expected to have significant performance catalyst in 2024 with 4Q23 EPS print on 2/22/24
• Sell side has adjusted numbers for 2024 despite recent underperformance
• Anticipated conservative guidance for 2024 sets up positive surprise for investors due to focus on “tariff” type earnings and long-term contracts in place

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points

• Short shares of EWBC, a medium-sized regional bank serving the Chinese/Asian expat community
• Trading at 1.5x price/TBV with compression in NIM and increased deposit costs
• Concerns about CRE exposure, uninsured deposits, investments in China/HK, and creditworthiness due to uniquely correlated customer base and soft guidance from management

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• ZEEKR (ZK US), a premium EV brand by Geely Auto (175 HK), aims to raise around US$370m in its US listing.
• Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the updates from its recent filings and have a relook at valuations.

• Perficient Inc (PRFT US) agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.
• I understand EQT has opted to present an offer that the Board could not refuse, on both EV/Fwd EBITDA and Fwd P/E basis.
• Spread is 3.6%/6.2% (gross/annualised, assuming settlement by 16 December). Long.

• The last week of SPACs was packed with buyouts, IPOs, and deal amendments.
• A co-working spaces provider gets a lifeline with a restructuring deal with its creditors, while a SPAC terminates a deal with a group of companies.
• Also, two new IPOs are announced, including one from serial sponsor Michael Klein after a three-year hiatus. Read on to find out the latest about all things SPACs. 

• The first quarter 2024 earnings for Newmont Corporation presents an operational and strategic snapshot for the company in a balanced manner.
• To lay out the salient attributes and challenges of investing in Newmont: Positively, Newmont executives highlight the company’s robust operational performance for the 1st quarter 2024.
• Despite experiencing the loss of three employees due to on-site incidents, Newmont still looks set to meet its 2024 guidance, thereby proving the underlying stability of its operations.

• Royal Caribbean Group has made impressive strides in reshaping the business in the first quarter of 2024.
• The company described its Q1 2024 as robust and experiencing an upward trajectory in business operations, bolstered by the consumers’ demand for vacation experiences.
• The results of Q1 2024 were significantly better than anticipated, with the company’s brands being stronger than ever and demand for vacation experiences showing consistent acceleration.

• Atlassian Corporation Plc, leading software and services provider, recently marked their Q3 of Fiscal Year 2024 earnings call, reporting significant growth in their Cloud customer base and paid seats, among other financial milestones.
• However, they also made the announcement of the stepping down of co-CEO, Scott Farquhar, by August 31, 2024.
• The growth in the Cloud customer base was highlighted as a result of the winding down of support for Server operations three and a half years ago, which yielded three times the increase in paid seats in the Cloud.

• -30% // Cocoa Bubble Has Busted Just two weeks ago, the most-active contract hit a record of almost $12,000 a ton as the industry grappled with the fallout of severe supply shortages.
• “It’s important to underscore that the recent downturn in cocoa prices is primarily a result of trading maneuvers, not a realignment of market fundamentals,” analysts at Fitch Solutions’ BMI unit said in a note, adding they expect volatility to persist.
• Volatility spiked as bigger margin requirements spurred traders to close out positions, helping to drive aggregate open interest in cocoa futures to the lowest in more than a decade.

• The Q1 2022 earnings reveal insights into the performance of Check Point Software Technologies.
• The company made some forward-looking statements related to its fiscal year 2022.
• Golan reported that its earnings per share (EPS) for the first quarter grew by 13% year-on-year to reach $2.04, with a net income of $235 million marking an 8% increase year over year.

• The Q3 2023 results released by Juniper Networks, Inc. showed a better-than-expected performance with significant profitability.
• Even in a challenging macro environment, the company was able to achieve total revenue of $1.398 billion and non-GAAP earnings per share of $0.60.
• The company anticipates that it will continue to perform well due to the increasing demands from customers for AIOps and software automation tools, which aim to improve network operations and reduce overhead costs.

• Western Digital performed exceptionally well in the third quarter of the fiscal year 2024, with revenue of $3.5 billion, a non-GAAP gross margin of 29.3%, and non-GAAP earnings per share of $0.63, surpassing market expectations.
• The company’s performance was bolstered by a diversified portfolio spanning multiple end markets, coupled with structural changes to its businesses enhancing its earning potential and ability to minimize business cycles.
• It was also able to leverage a constrained supply environment for higher earnings per share.

• ZEEKR (ZK US), a premium Chinese BEV manufacturer and a subsidiary of Geely Auto (175 HK), has launched an IPO to raise up to US$368 million.  
• We previously discussed the IPO in ZEEKR IPO: The Bull Case, ZEEKR IPO: The Bear Case and ZEEKR IPO: Latest Updates as the IPO Process Restarts. 
• The IPO price range values ZEEKR at a material discount to peers’ multiples. We would be inclined to participate in the IPO. 

• I have received several questions from readers on Ascendent’s binding proposal for Hollysys Automation Technologies (HOLI US) in the context of the current gross spread of 12.1%. 
• The questions primarily concerned the Capital Forum article, NSR approvals, timelines, auditor resignation and deal break risks. 
• Most of the questions concerned regulatory approval risk. The delay in closing is mainly procedural (government red tape) rather than an indication that regulators will block the deal. 

• Q124 revenues of $3.79 billion, pretty much flat sequentially both QoQ and YoY, and also marginally better than guidance.
• Looking ahead, the company forecasted Q224 revenues $3.8 billion, i.e. flat QoQ. Still no full year 2024 outlook
• Technology transitions such as GAA, Backside Power, molybdenum replacing tungsten & the rise of generative AI will all be growth drivers in 2025 & beyond 

• Following Exxon Mobil (XOM US)‘s acquisition of Pioneer Natural Resources (PXD), Vistra (VST US) will be added to the S&P 500 INDEX (SPX INDEX) at the close on 7 May.
• Marathon Digital Holdings (MARA US) is an add to the S&P SmallCap 600 Index and the stock could move higher till implementation.
• Marathon Digital Holdings (MARA US) stock has underperformed its close peers this year and the ratio of Marathon Digital Holdings stock price to Bitcoin (XBTUSD CURNCY) is near the lows.

• Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
• Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
• I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.  

• It is clear from Bristol-Myers Squibb’s first quarter 2024 earnings that the company has had a strong start to the year, even as it navigates some challenges.
• The firm’s performance during this time showcased the strength and potential of its commercial portfolio and the progress it has made in advancing its pipeline.
• Key brands such as Eliquis, Opdualag, Reblozyl, Yervoy, and Breyanzi have demonstrated significant strength, contributing to the company’s overall performance.

• Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
• A key aspect was the continuation of healthy demand for its products and services across major end markets.
• Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

• Comcast Corporation reported Q1 earnings recently highlighted by a strategic execution where the company maintained dominance in a competitive and evolving market.
• The company’s resilient capital allocation strategy and strong balance sheet place it in a favorable position, allowing it to invest aggressively in its six diverse growth businesses- Residential Broadband, Wireless, Business Services, Theme Parks, Studios, and Streaming.
• These sectors made up more than 55% of the company’s total revenue in Q1, and this proportion is set to grow.

• Dexcom, Inc., particularly known for its continuous glucose monitoring (CGM) technology, consistently showcased strong performance in the first quarter of 2024 with an organic revenue growth of 25% compared to the first quarter of 2023.
• This noteworthy surge is credited to the substantial demand for Dexcom CGM, seen as customers increasingly value its leading product performance and unique user experience.
• The shift towards Dexcom’s CGM technology has been significant, especially since the launch of G7 in the U.S., which enabled Dexcom to attract a broad range of new prescribers and improve its impact within primary care, resulting in growing demand from people with diabetes.

• Gilead Sciences Inc. reported a solid first quarter of 2024.
• Total product sales, exclusive of Veklury, rose 6% year-over-year to $6.1 billion.
• Growth was driven primarily by demand across its HIV, oncology, and liver disease verticals.

• Edwards Lifesciences Corporation recorded robust first quarter 2024 results, demonstrating growth on numerous fronts.
• The company’s total sales rose by 10% to $1.6 billion against the same period last year, leading Edwards to raise its 2024 sales guidance to the high end of 8% to 10%.
• This highlights the company’s successful strategic direction, underscored by its substantial investments across transcatheter platforms which are addressing patient needs associated with aortic, mitral, and tricuspid diseases.

• Honeywell International Inc.’s first-quarter 2024 earnings reveals consistent growth in the company, exceeding its adjusted earning per share guidance and organic sales targets.
• Despite the dynamic macroeconomic environment, the robust execution of Honeywell’s Accelerator operating system and the company’s diversified technology portfolio has led to significant performance gains.
• With recovery in key areas of Honeywell’s short-cycle portfolio and sustained growth in its long-cycle Aerospace and energy businesses, the company demonstrates a positive momentum in its financial results.

• Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
• With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
• Its lean journey and sustained productivity have contributed greatly to these results.

• Teradyne, Inc delivered first quarter 2024 financial results that exceeded its revenue, gross margin and earnings guidance ranges, led by stronger than projected performance in Memory and System on a Chip (SOC) driven primarily by AI applications.
• Teradyne capitalized on the impact of AI in networking as well as in Edge AI applications like Advanced Driver Assistance Systems (ADAS), with AI applications driving over 40% of memory shipments in Q1.
• Nonetheless, the mobile sector was weaker than expected for the same period, but the company’s Robotics business met its plan for a third consecutive quarter.

• Teledyne Technologies, a prominent industrial conglomerate focused on aerospace and defense, instrumentation, digital imaging, and engineered systems, reported its Q1 2024 earnings.
• In the call, management touted robust results including record first quarter non-GAAP operating margin, record adjusted earnings per share, and record free cash flow.
• The company’s strong performance was driven by growth in its marine, aviation, and select defense businesses which offset sales declines in other areas.

• Waste Connections, Inc. reported a strong start to 2024, delivering better-than-expected operating and financial results, including adjusted EBITDA margin expansion of 160 basis points to 31.4% in Q1.
• The company’s earnings exceeded projections due to improvements in employee retention and safety trends, along with rising commodity values.
• Waste Connections management highlighted several notable trends impacting its business, including continued improvement in employee turnover rates and safety incidents, suggesting an effective culture of accountability within the company.

• Hilton has reported its first-quarter results for 2024, which the company states have continued to demonstrate the strength of Hilton’s business along with its development story.
• Although the company’s RevPAR growth found itself at the lower end of its guidance, both adjusted EBITDA and adjusted EPS exceeded predictions significantly.
• Some of Hilton’s newly announced partnerships and portfolio additions have solidified its confidence in future growth.

• Tempur Sealy International (TPX) is the industry leader in the mattress market, consistently gaining market share and outperforming competitors
• Despite a cyclical downturn in the mattress industry post-COVID, TPX is experiencing secular share gains and margin improvements
• TPX’s pending acquisition of Mattress Firm presents an attractive opportunity for investors due to its reasonable valuation and potential for growth in the years ahead

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• In the first quarter of 2024, O’Reilly Automotive, Inc., had a 3.4% comparable store sales growth, which was primarily driven by mid-single-digit comps in Professional.
• This marked continuous strong top line sales results and was a testament to consistent execution across all 6,200+ stores.
• The company noted that its store volumes continued to grow despite the company’s size and market share gains over the years.

• Tyler Technologies’ Q1 2024 results started the year on a positive note, surpassing key metrics expectations including revenues, earnings, operating margin, and cash flow.
• Recurring revenues grew nearly 9% and comprised 84% of total revenues.
• The company also saw robust public sector demand supported by healthy budgets.

• MiMedx is a wound care and therapeutic biologics company, developing and distributing allografts.
• The company derives its products from human placental tissues processed using the Purion technology.
• MiMedx differentiates itself in the regenerative medicine market through the substantial library of supportive research for its products.

• EB is continuing with its efforts to become a marketplace for events after reporting more than 24 million tickets were sold in the first quarter.
• EB has been trying to win back paid creators after many left the platform last year due to higher costs for events on EB’s marketplace
• While revenue was in line with consensus estimates, EB reported its third consecutive quarter with gross margin above 70 percent

• Based on the Q1 2024 earnings of Fortive Corporation, it is discernible that the company has visualized a strong start to the year, overachieving its anticipations regarding core revenue growth, margins extension, earnings, and free cash flow.
• Fortive’s strategy broadly focuses around invigorating safety and productivity of consumers across manufacturing and healthcare sectors.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Lam Research Corporation delivered a strong start to 2024, with the Q1 earnings surpassing the midpoint of their guidance.
• Although the business environment prospers as predicted, the company acknowledges ongoing risks and uncertainties reflected in SEC public filings.
• The quarter witnessed stability in Lam’s overcall 2024 revenue profile, with spending mainly driven by lithography shipments into China and enduring investment in domestic China.

• Meta Platforms Inc.’s Q1 shows strong headway with an increase in both product momentum and business performance reaching an estimated 3.2 billion active users per day, showcasing healthy growth particularly in the US market.
• The performance of the associated messaging app, WhatsApp, has been highlighted, reporting a steady increase in daily active users and message sends in the US. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Enphase Energy, a leading provider of energy management solutions, reported its first quarter 2024 financial results.
• For the quarter ending March 31, 2024, the company reported a total revenue of $263.3 million, a slight decrease compared with the previous quarter.
• The company also managed to ship approximately 1.4 million microinverters and 75.5 megawatt hours of batteries during this period, leading to a free cash flow of $41.8 million.

• International Business Machines Corporation’s Q1 2024 earnings demonstrated the company’s solid performance with good financial results across revenue and cash flow.
• These results indicate the quality of the company’s portfolio and its hybrid cloud and AI strategy.
• The software division performed well, with infrastructure showing strength.

• Fiserv has started the year on a high note.
• This promising start was partly due to strong financial performances characterised by a 19% rise in adjusted earnings per share and a 7% increase in adjusted revenue growth.
• Remarkably, this positive performance enabled the company to lift their adjusted earnings per share outlook to a range of $8.60 – $8.75 from the former range of $8.55 – $8.70, signalling anticipated growth of 14% to 16%.

• In its first quarter earnings, Freeport-McMoRan reported successful results in executing its business strategies.
• The incoming CEO, Kathleen Quirk, outlined the company’s strategic focus on copper, citing the growing global demand for the metal in numerous sectors, particularly in electrification.
• The long-term trends point to tight market conditions due to constrained existing supplies, limited major new projects, and extended deadlines for supply development.

• Waste Management, Inc. has successfully delivered a strong end to 2023, with a 15% increase in fourth quarter operating EBITDA. This has resulted in full year operating EBITDA exceeding the company’s most recent guidance range by Waste Management Inc. (WM) witnessed robust financial performance for Q1 2024, underscored by outstanding operational performance in the collection and disposal business.
• Operating EBITDA witnessed a growth of 15% for this quarter, with margins expanding by 240 basis points.
• This was propelled primarily by significant momentum in cost-effective efforts and disciplined execution of pricing programs.

• The first quarter 2024 financial results of Chipotle Mexican Grill showed positive growth with a rising momentum.
• The company reported a 7% comp sales growth driven by over 5% transaction growth.
• Fueled by the company’s focus on improving throughput and successful marketing campaigns, sales rose by 14% to reach $2.7 billion.

• ServiceNow had a strong first quarter in 2024, outperforming guidance on all top-line and profitability metrics.
• The company’s subscription revenue grew by 24.5% year-over-year on a constant currency basis.
• Current remaining performance obligations (CRPO) rose by 21% year over-year in constant currency, which was above the company’s guidance.

• In their First Quarter 2024 Earnings Results Lockheed Martin gave an outline of their strong financial performance and offered an insight into some key initiatives that are currently in progress.
• Their results reflect a robust growth in revenue across the company, and a stable backlog amounting to $159 billion, an indication of the alignment between the firm’s advanced technology solutions and the missions and priorities of their customers.
• The highlights of the FY ’24 defense budget reflect well on Lockheed Martin with robust funding earmarked for munitions multiyear procurement, ongoing investments into hypersonics and classified activities, and consistent support for long term initiatives such as Black Hawk, CH-53K heavy lift helicopter, the fleet ballistic missile, C-130, and F-35.

• Q124 revenues of $5.5 billion, $100 million above the guided midpoint, down 11% QoQ but up 2% YoY.
• Looking ahead, AMD forecasted the current quarter revenues of $5.7 billion, up 3.6% sequentially.
• Share price down 7% in AH and down 35% from its recent 52 week high. We could see it retest the $100 level in the coming months

• Now that Meta, Alphabet, Microsoft, and Amazon all reported their quarters, we now have better context to how their quarters went.
• So, while I will mostly discuss Amazon’s earnings in this update, I will briefly touch on some broader themes as well.
• Overall revenue was slightly below the high end of Amazon’s guidance.

• TRS reported first quarter results confirming a turnaround in the packaging segment could be underway
• Packaging is TRS’s largest business segment and had undergone a restructuring last year. The increase in sales has done little to impress investors
• TRS reported first quarter sales of $227.1 million compared to our estimate of $216.2 million. The biggest driver for the outperformance was the packaging segment

• ATEN reported first quarter results exhibiting much of the issues that plagued the business in the past couple of years have not fully departed from the industry.
• ATEN reported revenue slightly higher than we were projecting resulting in year over year growth.
• ATEN’s stock has not reached previous highs with investors most likely waiting for a signal that revenue would surpass 2022 level. This is more likely a 2025 event

• We are reiterating our Buy rating, projections and price target for a.k.a. Brands with the company announcing 1Q24 (March) results after the close on Wednesday.
• We believe 1Q will be another period of rebuilding momentum and credibility, with the cleanup continuing at Culture Kings, Princess Polly adding new retail stores to the mix and rolling out new categories to become even more of a lifestyle brand and Petal & Pup leveraging new digital marketplace relationships and continued dress-driven expansion.
• Further, we believe management remains laser focused on reducing both inventory exposure and net debt.

• A diverse mix of producing assets in Gabon, Egypt, and Canada, coupled with future development projects in Equatorial Guinea and Cote d’Ivoire, positions VAALCO with an asset base that could generate substantial free cash flow to reinvest for growth and continue returning cash to shareholders in the coming years.
• VAALCO closed the Svenska acquisition on April 30, 2024, for $40.2 million in cash.
• The primary asset is a 27.39% non- operated working interest in the deepwater producing Baobab field in Block CI-40 offshore Cote d’Ivoire.

• Hilton is a well-established franchisor of hotel brands with a history dating back to 1919
• While not offering high expected returns, Hilton is viewed as a solid business opportunity with the potential for steady growth in intrinsic value
• Through significant events like its IPO, acquisition of Promus, LBO by Blackstone, and spin-offs, Hilton has positioned itself as a stable and well-run option for investment portfolios in the global travel industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating and $8 price target and conservatively leaving our 2024 and 2025 revenue and Adjusted EBITDA projections unchanged after urban-gro registered upside in 1Q top and Adjusted EBITDA and reiterated prior 2024 guidance.
• That said, with the Drug Enforcement Agency approving the reclassification of cannabis from a Schedule I to Schedule III drug, and the potential for Florida to approve recreational cannabis usage in November, we believe our 2H24 and especially 2025 projections could prove highly conservative.
• As such, we are reiterating our Buy rating and $8 price target.

• Tesla Inc.’s first-quarter earnings for 2024 offered a critical and insightful update on the electric vehicle manufacturer’s strategy and financial performance.
• Tesla appears committed to its strategic focus on vehicle autonomy and digitisation, with CEO Elon Musk stating that the company should be viewed primarily as an AI (Artificial Intelligence) and robotics firm, underlining its commitment to Full Self-Driving (FSD) as a key future revenue stream.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Visa’s Fiscal Second Quarter 2024 Earnings indicate that Visa appears to be standing on solid financial ground with plenty of room for growth.
• The leading global payments technology company recorded $8.8 billion in net revenue for the quarter, marking a 10% increase.
• Its GAAP Earnings Per Share (EPS) rose by 12%, while non-GAAP EPS also saw an upward movement by 20%.

• Netflix Inc.’s Q1 2024 earnings highlighted a number of impactful developments and strategic shifts that investors should consider.
• The company’s management team made it clear that while they’ll no longer be reporting quarterly membership in ARM data starting in 2025, they will continue to provide updates on key metrics including revenue, OI, OI margin, net income, EPS, and free cash flow.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• While we are not yet out of the woods, we continue to see evidence that suggests the lows may be “in” for this pullback.
• Last week (4/23/24 Compass) we discussed the possibility that further downside was limited on the S&P 500 due to a multitude of reasons
• We view the latest pullback to 100-day MA on SPX as healthy/normal within the ongoing bull market. Pullbacks to the 100-day provided ideal entry points throughout the 2021 bull market

• PepsiCo’s recorded performance in the Q1 2024 earnings signaled steady growth and improvement across a range of business areas.
• The company’s leadership tone was grounded in its strong performance, highlighting several positive aspects as well as acknowledging a few challenges faced during the fiscal quarter.
• PepsiCo’s robust international performance was repeatedly underlined as one of the highlights of Q1 2024.

• Texas Instruments (TI) reported a first quarter of 2024 revenue that met expectations, despite witnessing a 10% sequential and 16% year-over-year decrease to $3.7bn.
• Revenue declined across all of its end markets as customers continued to pare their inventory levels.
• In terms of individual revenue components, Analog revenue declined 14% year-over-year, Embedded Processing declined 22%, and the Other segment declined 33% from the year-ago quarter.

• GCC (Outperform): posted positive results, which are above our estimates.
• Higher prices in cement and ready-mix supported solid results.
• Consolidated EBITDA increased +32% YoY, while the EBITDA margin reached 30.4% (+4.6 pp. YoY).

• Matthews International is an undervalued diversified industrial company
• The potential IPO of its machinery segment for dry battery electrodes could unlock value
• The Industrial Technology segment, with Tesla as a customer, has significant potential for growth and value creation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Shorting suggestion for WD-40 due to potential decrease in earnings growth
• High multiple of earnings guidance and projected 50% decrease in stock price
• Factors including temporary demand spike, significant price hike, and concerns about future growth cited as reasons for shorting suggestion

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cleveland-Cliffs Inc in their Q1 2024 Earnings has placed particular emphasize on their tactic of share buybacks as an essential capital allocation method.
• During this time period, the firm was able to procure over 30 million of its own shares, utilizing approximately $608 million from a previous $1 billion share buyback program announced in 2022.
• Over the past few years, the company’s diluted share count has been lowered by over 100 million shares, reflecting a significant 17% reduction and pointing to an average purchase price of $18.79 per share, a price point considerably lower than the current trading price.